Times Of Swaziland: LAVUMISA OIL REFINERY IN PIPELINE

LAVUMISA OIL REFINERY IN PIPELINE
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BY STANLEY KHUMALO on 09/10/2019 00:40:00


MBABANE – Entrepreneurs and job seekers will benefit from a new refinery
project in Lavumisa.
Lavumisa is a port of entry for traffic between Kwa-Zulu Natal Province, South
Africa and the country.
The oil refinery is set to be constructed by USA Fuels, a member of the USA
Holding group of companies. This company has been operating in the country for
more than 20 years.
If the permission to operate the oil refinery is awarded to USA Fuels, local
civil contractors stand to be contracted as per the Construction Industry
Council’s regulations.
Attain
It seeks to attain the authorisation for a proposed oil refinery project to be
located in Lavumisa, approximately 3 kilometre (kms) from the border alongside
the MR8 and railway line.
The proposed oil refinery will be developed in phases from an initial 15 000
barrels per day to 120 000 barrels of refined oil per day.
This is anticipated to materially assist in providing the country with
progressive independence from imported refined fuel and petrochemicals, while
also generating the capacity to export fuel and petrochemicals.
This project is envisaged to support the sustainable economic and social
development of the country.
The company (USA Fuels) noted that it was committed to implementing the project
in an environmentally sound manner and in accordance with the country’s
regulatory requirements.
“As such, a project brief will shortly be prepared and submitted to the
Eswatini Environment Authority (EEA) in accordance with the Environmental Audit,
Assessment and Review Regulations, 2000.”
Due to the nature of the project, the company anticipated that it would be
registered as a Category 3 project, requiring a full Environmental and Social
Impact Assessment.
This shall be parallel to a compilation of a Comprehensive Mitigation Plan
informed by the Impact Assessment and Stakeholder Engagement.
Prior to the formal scoping process, which will be part of the Environmental and
Social Impact Assessment study, USA Fuels released a  notification seeking to
invite interested and affected parties to communicate with Julian Mlangeni of
ESMS Environmental and Social Consultants - for any comments and concerns that
might arise regarding the proposed project.  The contact details are as follows:
Email: esms@swazi.net
Tel.: (+268) 2416 2589
Cell (+268) 7602 3664
Meanwhile, this would not be the only oil refinery as there is another at
Phuzamoya that is being constructed. Minister of Natural Resources and Energy,
Peter Bhembe, early in the year said the ministry would sign a contract with a
Taiwanese company.
Awarded
The oil reserves at Phuzumoya were said to be worth E900 million when the first
contract was awarded, without being tendered for. When it was enquired from the
minister on what was the status of the reserves, Bhembe said: “Currently, we
are reviewing the designs of the oil refinery.” Bhembe could not state the
value of the take-over by the Taiwanese company.
He said until the review and drawing of the designs were complete, it was
impossible to know the cost of the whole project. Further, according to a press
statement by the Ministry of Natural Resources Principal Secretary, Winnie
Stewart, Kantey & Templer Swaziland (Pty) Ltd agreements on the development of
the strategic oil reserve facility at Phuzumoya with government has lapsed.
“The ministry would like to inform the public and all entities locally and
internationally that the Government of Eswatini has no contractual relationship
with Kantey & Templer Swaziland (Pty) Ltd on the development of the Strategic
Oil Facility Project.”
Risk
Stewart said all agreements or contracts between Kantey & Templer Swaziland
(Pty) Ltd and government had lapsed; therefore, any person engaging Kantey and
Templer on the Strategic Oil Reserve Facility at Phuzumoya was doing so at their
own risk.
Kantey & Templer Swaziland (Pty) Ltd had been contracted to build a ‘Strategic
Oil Reserve’ at Phuzumoya in the Lubombo Region. It was to store up to 170
million litres of fuel.
In October 2013, His Majesty King Mswati III officially launched the
construction of the project at a sod cutting ceremony.
He said at the time, ‘The project that I bring to you today is one that is
geared into transforming lives and take the entire region into higher
heights.’